YAKIMA, Wash. -- Not only will new energy-efficient windows in Stan Hahn's Naches Heights home equate to lower heating and cooling costs, but they also translate into rebates -- about $920 worth.

Hahn is just one of many Yakima Valley residents expected to take advantage of renewed federal tax breaks and Pacific Power rebates being offered to homeowners who make energy-efficient upgrades this year.

For the past two years, Pacific Power has offered customers rebates of $1.50 per square foot of window replaced with energy-efficient glass, as well as similar rebates for insulation upgrades.

In addition, the federal government has renewed a tax credit of up to $1,500 to homeowners who make energy-efficient upgrades such as new insulation, windows, doors, and heating and cooling systems in 2009 and 2010.

The tax incentives and rebates will come in handy during the slow housing market, said accountant Bill Harper of Jackson Hewitt Tax Service.

"A lot of middle class people not wanting to buy a new home are fixing up what they already have since they're going to be able to get a credit for it," he said. "And the more that is out there, the more people are going to want to put it on their taxes."

Initially, Hahn merely wanted to put an end to the cold draft that swept through the original single-pane windows that filled his 2,800-square-foot home that was built on a cliff in 1965. He's lived there for 23 years.

So far, he's spent about $4,700 to upgrade 13 of the 16 windows -- about 300 square feet of glass -- that fill his three-bedroom, two bath home. He later plans to replace the three remaining windows.

The new windows are made of gas-filled double-pane glass and vinyl frames.

"I've noticed a difference already," he said. "So I know it's gong to be an energy saver as far as the heat and even with the air conditioner on."

And the rebate Pacific Power is offering homeowners will equate to about $450 for Hahn.

That doesn't include the $470 federal tax credit he expects to get when he files his income tax return next year.

Windows that meet federal tax credit qualifications are up to 50 percent more efficient than noninsulated ones and cost about 35 percent more, said Central Valley Glass co-owner Les Riel.

This year, his store has seen about a 20 percent increase in business, with about half of those customers seeking windows that qualify for the tax credit, he said.

"It's been a hot-ticket item," he said of the tax credit.

Hahn said he shopped at three different local window companies before finding the lowest price.

"So it's worth doing some checking for prices," he said.

There are several upgrades that qualify for the one-time federal energy-efficient tax credit: wall, ceiling, floor insulation, hot water pipe insulation, heat pumps, windows, doors, roofs and ceiling fans.

The one-time federal tax credit covers up to 30 percent of the cost of all upgrades, with a maximum credit of $1,500.

For solar upgrades, however, the one-time 30 percent tax credit has no limit, meaning that a person who installs a $50,000 solar heating system would stand to receive a $15,000 tax credit if his or her income tax exceeded that amount, said certified public accountant Paul Neiffer.

But the products you choose must meet federal energy-efficiency guidelines to qualify for the tax credits, and retailers and manufacturers usually provide that information to buyers, he said.

"Retailers are telling customers about tax credits, and manufacturers have the documentation of what energy-efficient tax credit products qualify for and the amount of the credit," he said.

Hahn said he has to send to Pacific Power the energy rating stickers that came on his windows, along with proof of purchase within three months of having them installed, to get the rebate.

But he doesn't have to send that information to the federal government when filing his income tax return, Neiffer said.

Still, it's important to keep that documentation after buying such items, he said -- "in case they get audited or in case the IRS sends them a notice requesting that information."

* Phil Ferolito can be reached at 509-577-7749 or pferolito@yakimaherald.com.

Your turn

Have any tips or best practices for winterizing your home? We'd like to hear from you. Send them to smayes@yakimaherald.com. Don't forget to include your name and phone number.

Resources on the Web

www.energystar.gov/taxcredits

www.energy.gov/taxbreaks.htm

www.ase.org/taxcredits

Federal tax credits

Tax credits are available at 30 percent of the cost, up to $1,500, in 2009 and 2010 (for existing homes only) for:

Windows and doors

Insulation

Roofs (metal and asphalt)

HVAC

Water heaters (nonsolar)

Biomass stoves

Tax credits are available at 30 percent of the cost, with no upper limit, through 2016 (for existing homes and new construction) for:

Geothermal heat pumps

Solar panels

Solar water heaters

Small wind energy systems

Fuel cells

-- Source: www.energystar.gov